CITY OF VANCOUVER INCLUDING BOARDS AND COMMISSIONS BRITISH COLUMBIA STATEMENT OF FINANCIAL INFORMATION DECEMBER 31, 2012 FINANCIAL STATEMENTS SCHEDULE OF DEBTS SCHEDULE OF GUARANTEE AND INDEMNITY AGREEMENTS SCHEDULE OF REMUNERATION AND EXPENSES SCHEDULE OF SUPPLIERS FOR GOODS AND SERVICES Published pursuant to the Financial Information Regulations under the Financial Information Act of British Columbia CITY OF VANCOUVER STATEMENT OF FINANCIAL INFORMATION APPROVAL The undersigned, as authorized by the Financial Information Regulation, Schedule 1, subsection 9(2), approves all the statements and schedules included in this Statement of Financial Information, produced under the Financial Information Act. Esther Lee Director of Financial Services Deputy Director of Finance April 25, 2013 CITY OF VANCOUVER DIRECTOR OF FINANCE REPORT The Financial Statements contained in this Statement of Financial Information under the Financial Information Act have been prepared by management in accordance with Canadian generally accepted accounting principles, and the integrity and objectivity of these statements are management’s responsibility. Management is also responsible for all the statements and schedules, and for ensuring that this information is consistent, where appropriate, with the information contained in the financial statements. Management is responsible for implementing and maintaining a system of internal controls to provide reasonable assurance that reliable financial information is produced. The City’s Internal Audit Division has the responsibility for assessing the internal control environment of the City and making observations and recommendations on the effectiveness of management systems and processes. The Internal Audit Division reports to the Internal Audit Management Team. The External Auditors, KPMG LLP, conduct an independent examination, in accordance with Canadian generally accepted auditing standards, and express their opinion on the financial statements. Their examination does not relate to the other schedules and statements required by the Act. Their examination includes a review and evaluation of the City’s system of internal control and appropriate tests and procedures to provide reasonable assurance that the financial statements are presented fairly. The External Auditors present their audit findings to the City’s Finance and Services Committee. On behalf of the City of Vancouver, Esther Lee Director of Financial Services Deputy Director of Finance April 25, 2013 TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS ................................................................. TAB 1 SCHEDULES OF DEBTS AND GUARANTEE AND INDEMNITY AGREEMENTS General ................................................................................................................... 1 Local Improvement ................................................................................................ 4 Schedule of Guarantee and Indemnity Agreements ............................................. 7 SCHEDULE OF REMUNERATION AND EXPENSES Mayor and Councillors ........................................................................................... 10 Vancouver Board of Parks and Recreation Commissioners .................................. 11 Vancouver Police Board Members ........................................................................ 12 Employees ............................................................................................................. 13 Severance Agreements .......................................................................................... 31 PAYMENTS TO SUPPLIERS OF GOODS AND SERVICES General ................................................................................................................... 34 Vancouver Public Library Board - Books and Materials ........................................ 46 Grants Business Improvement Association ................................................................ 49 Cultural ........................................................................................................... 50 Community Services ...................................................................................... 52 Childcare ........................................................................................................ 54 Other ............................................................................................................... 55 CITY OF VANCOUVER BRITISH COLUMBIA CONSOLIDATED FINANCIAL STATEMENTS 2012 TABLE OF CONTENTS Mayor and Council ...................................................................................................................... 1 Officials ....................................................................................................................................... 2 Boards ......................................................................................................................................... 3 Financial Statements Report of the Director of Finance ....................................................................................... 4 Auditors’ Report .................................................................................................................. 9 Consolidated Statement of Financial Position .................................................................... 10 Consolidated Statement of Operations ............................................................................... 11 Consolidated Statement of Change in Net Debt ................................................................ 12 Consolidated Statement of Cash Flows ............................................................................. 13 Notes to Consolidated Financial Statements ...................................................................... 14 Schedule I – Segmented Information .................................................................................. 27 MAYOR AND COUNCIL ANNUAL FINANCIAL REPORT 2012 1 OFFICIALS Corporate Management Team City Manager P. Ballem, MD, FRCP Deputy City Manager S. A. Johnston, LEED AP Chief Constable J. Chu, B.B.A, M.B.A. Director of Legal Services F. Connell, LL.B. City Librarian S. Singh, B.A., MLIS General Manager of Community Services B. Prosken, BSW, MPA Director of Corporate Communications M. Welman General Manager of Engineering Services P. Judd, P. Eng. General Manager of Fire and Rescue Services J. McKearney, M.A. General Manager of Financial Services Group and CFO P. Impey, B. Sc., M.B.A. General Manager of Human Resource Services P. Mochrie, BCom, M.B.A. General Manager of Parks and Recreation M. Bromley, Dip Rec. General Manager of Planning and Development Services B. Jackson, MCIP General Manager of Real Estate and Facilities Management B. Aujla, B.A.Sc., M.B.A., LL.B. Financial Services General Manager of Financial Services Group and CFO P. Impey, B. Sc., M.B.A. Director of Financial Services E. Lee, B. Comm., C.A. Associate Director of Financial Services G. Krueger, B. Comm., C.A. City Clerk J. MacKenzie MPA, B.Comm. ANNUAL FINANCIAL REPORT 2012 2 BOARDS Vancouver Public Library Board C. Evans – Chair E. Kazemi – Vice-Chair M. Lombardi - School Board Trustee C. Barnes – Park Board Commissioner Councillor H. Deal – City Council Representative M.L. Baum K. Epstein C. Brooks D. Millward A. Chan J. Schaub D. Chariandy J. Swift Vancouver Police Board Mayor G. Robertson – Chair D. Bridgeman W. Shao M. Collins D. Sidhu W. Grant S. Williamson P. Marfleet G. Wong Board of Parks and Recreation S. Blyth – Chair A. Jasper – Vice-Chair C. Barnes T. Loke J. Coupar N. Sharma M. De Genova Vancouver Civic Theatres Board R. Haynes – Chair K. Sutherland – Vice-Chair Councillor E. Ball – Council Liaison S. Adams K. Sutherland R. Haynes K. Wilson M. Noon I. Woo W. Soobis ANNUAL FINANCIAL REPORT 2012 3 REPORT OF THE DIRECTOR OF FINANCE City Hall, Vancouver April 15, 2013 Mayor G. Robertson and Members of Council It is our pleasure to submit the Consolidated Financial Statements for the City of Vancouver for the year ended December 31, 2012. These financial statements include the financial position and results of operations of the City including its boards and City controlled corporations. The City’s financial statements consist of: Consolidated Statement of Financial Position – summary of financial and non-financial assets, liabilities and accumulated surplus at yearend. Consolidated Statement of Operations – summary of revenues, expenses and annual surplus for the year. Consolidated Statement of Change in Net Debt – summary of changes in financial assets and liabilities. Consolidated Statement of Cash Flow – summary of the sources and uses of cash in the year. Consolidated Financial Position ($Millions) 2012 2011 Change Financial assets $ 1,569.2 $ 1,419.5 $ 149.7 Liabilities 1,837.1 1,838.8 (1.7) Net debt (267.9) (419.3) 151.4 Non-financial assets 6,198.4 6,203.3 (4.9) Accumulated surplus $ 5,930.5 $ 5,784.0 $ 146.5 The City’s overall financial position improved by $146.5 million in 2012 with accumulated surplus totaling $5.931 billion (2011 - $5.784 billion). Net Debt, calculated as Financial Assets less Liabilities is an indicator of the amount of future revenues required to pay for past transactions and events. The City’s Net Debt improved by $151.4 million to a total of $267.9 million mainly due to the City’s annual consolidated surplus (revenues exceeding expenses) of $146.4 million. The City’s non-financial assets decreased in 2012 by $4.9 million, bringing